Car Insurance Discounts for Business Owners

Car insurance discounts for business owners can lower the typically high rates. You can save money on car insurance by driving a company vehicle and taking advantage of tax write-offs.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP® Joel Ohman

UPDATED: May 4, 2022

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Here's what you need to know...

  • Business owners have the opportunity to take advantage of tax write-offs
  • You can use tax write-offs if you drive your personal car for business, have a work cell phone, and more
  • You should always consult an accountant or tax specialist to ensure you make no mistake when filing your taxes

Being a business owner can be very rewarding, but it takes a lot of work to start and run a successful business.

A positive thing is that many daily activities you do for your business can serve as a tax write-off. This includes driving for business purposes.

Driving for your business requires the proper car insurance. The average annual car insurance rate for a business owner is $1,405.11.

No matter what occupation you have, you can compare car insurance rates from top companies now by entering your zip code in the FREE box above!

Tax Write-Offs

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As a business owner, tax write-offs are a big incentive. However, if you do not do them the right way, they can become red flags that auditors look for.

It becomes even trickier when your business is a home-based business and your office is located on your personal property.

Following the proper tax laws is important in order to avoid fees and fines.

The first tax write off that most business owners take advantage of is travel expenses.

This can be air travel or travel on the road. If you travel by air, the cost of the airplane ticket and all associated costs can be written off.

If you travel by road, all costs for the rental car can be written off. If you drive your own car, keep track of the mileage and you can be reimbursed a certain amount per mile.

This amount is set each year by the federal government.

Another write-off for business owners is a cell phone. The only catch is that you have to show that you use it more for business than for personal use.

You do this by keeping printouts of your bill and highlighting your business calls.

If there are a few months where personal call volume is higher than business call volume, that isn’t a problem, but if it becomes consistent, you can no longer deduct your cell phone as a business expense.

A home office is also a tax write-off if you have a space that is dedicated solely to your business.

It cannot be a home computer room that you use for your business.

You can also take the square footage of your home and divide the gas, electric, and water bill by the square foot and write off the portion that goes into the home office.

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 The Reason Behind The Rates

The reason that car insurance is in the high range for business owners is because insurance rates are set by industry research.

Insurance industry research shows that business owners spend a lot of time on the road, especially during the start-up stage of business.

Time on the road is spent running errands, going to appointments, networking, and marketing.

The more time spent on the road means the more exposure to possible accidents.

Even though the driving may be for business purposes, if you are driving your own vehicle, you are covered under your personal insurance.

It is important to note that if you are driving a company vehicle, you are covered under your commercial auto insurance policy.

Industry research also shows that business owners tend to work long hours and are driving early in the morning and late at night. These driving times are when more accidents happen.

Statistics also show that drivers who are tired are less alert and are prone to dozing off at the wheel contributing to the possibility of an accident.

Saving Money

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If you want to start and run a successful business, you need to be smart with how you spend your money. And as a business owner, you can save money on car insurance by driving a company vehicle more than your personal vehicle.

You can also save money by making sure you have considered all the tax write-offs possible.

Hiring an accountant or tax specialist to help you is worth the cost.

They will be more familiar with tax laws and can make sure you are doing things legally and getting as many benefits as possible.

Business owners can also save money by waiting as long as possible to increase the employee base of the business. The longer you can work at the business full-time, the better.

Once you have a strong customer base, you can step back from the day-to-day work and focus on increasing business or expanding.

Compare car insurance rates from top companies now by entering your zip code in the FREE box below!


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